Take a look at the different types of savings accounts, things to consider when opening a savings account, and the top-rated savings accounts currently on the market.
Having a savings account is an important part of financial planning. It can help you reach your goals and provide peace of mind knowing that you have money set aside for emergencies or large purchases. But with so many different types of savings accounts available, it’s hard to know which one is right for you.
We'll discuss top savings accounts, how much money should be kept in your emergency fund, and other tips for managing your finances wisely. With this information in hand, you will be able to make an informed decision about what type of savings account best fits your needs.
Different Types of Savings Accounts
There are many different types of savings accounts to choose from. These include traditional savings accounts, money market accounts, certificates of deposit (CDs), and high-yield savings accounts.
Traditional Savings Accounts: Traditional savings accounts generally offer low interest rates but also provide easy access to your cash when needed. They are usually free or have very minimal fees and minimum balance requirements.
Money Market Accounts: Money market accounts typically require a higher minimum balance than traditional savings accounts, but they often offer higher interest rates as well as check-writing privileges.
Certificates of Deposit (CDs): CDs are more suitable for those looking for long-term investments since they require the account holder to keep their funds in the account for a predetermined length of time. They often offer higher interest rates than traditional savings accounts.
High-Yield Savings Accounts: High-yield savings accounts offer the highest interest rates, but they also usually require a minimum balance and may have additional fees.
Things To Consider When Opening a Savings Account
When it comes to opening a savings account, there are a few key factors to consider before making your decision. The most important things to think about include:
Interest rate: Many banks offer different levels of interest depending on the type of account you open. Make sure to compare several banks and their rates to get the best deal possible.
Fees & Minimum Balance Requirements: Some banks may charge monthly or annual fees, as well as minimum balance requirements. Be sure to check if any of these apply, and how they will affect your account.
Accessibility: Consider how easy it is to access your account and make deposits or withdrawals. Some banks offer online banking services, while others require you to visit a physical branch in order to manage your money.
Many banks offer incentives such as no fees or minimums and the ability to open an account online today. Make sure you take advantage of these offers when selecting a savings account.
Top Rated Savings Accounts Currently on the Market
Now that you have a better understanding of what type of savings account may be best for you, let's take a look at some of the top-rated savings accounts currently on the market.
Ally Bank Online Savings Account: Ally Bank offers a competitive interest rate of 0.50%, as well as no monthly maintenance fees or minimum balance requirements. You can easily access your account online and make deposits or withdrawals with no hassle.
Capital One 360 Savings: Capital One's 360 Savings account offers an impressive 0.75% interest rate and no monthly fees or minimum balance requirement. Additionally, you can open an account online in minutes without any paperwork.
Discover Online Savings Account: This account offers an APY of 0.45%, no fees or minimums, and the ability to open an account online today. It also features 24/7 customer service and mobile banking services.
CIT Bank Money Market Account: This account offers a tiered APY starting at 0.50%, no monthly maintenance fees, and the ability to open an account with only $100. It also allows up to six free withdrawals per month and features both mobile and online banking.
Making an Informed Decision About What Type of Savings Account is Right for You
When it comes to deciding what type of savings account is right for you, there are a few key factors to consider. Make sure you compare interest rates, fees, minimum balance requirements, and accessibility features before deciding on a specific account. There are many great options out there that offer no fees or minimums and the ability to open an account online today.